Alphabet Q2 2023 Results Better Than Estimates Googl Up

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Alphabet Q2 2023 Results Better Than Estimates Googl Up

Alphabet's Q2 2023 Results Better Than Estimates; GOOGL Up By 6%

Alphabet's earnings result was released on Tuesday, which showed the tech company earned a lot more than the estimates. As per the details, the company's better-than-expected results for Q2 were mainly driven by its cloud computing business.

After the report, Alphabet's (GOOGL) stock gained a 6% upside which is a sign of investors' confidence. Overall, Alphabet's EPS was $1.44, while the revenue was around $74.6 billion.

If we look at the expectations, it was only for a revenue of around $72.82 billion and a $1.34 EPS. So on both fronts, Alphabet's results have beaten expectations, which is the main reason why the stock jumped today.

Google's Advertising Revenue Up By 3.2%

If we look at revenue from Google's advertising business, it was $58.14 billion, with an increase of 3.2%. Similarly, the Google search revenue for Q2 was $42.63 billion, with an increase of 4.8%. Furthermore, the revenue for YouTube was $7.67 billion, with a 4.4% increase.

For YouTube, the expected revenue was around $7.43 billion, while the actual value was a little higher than that! That's an indication that Google's revenue has increased across the majority of its businesses. Similarly, Google Cloud revenue also jumped by 28% and was around $8.03 billion for Q2 2023.

Now if we look at the costs, one of the major components is TAC (Traffic Acquisition Costs) which was recorded at $12.54 billion. During Q2 2022, the TAC was around $12.21 billion only, which tells us that the costs have also increased a little during Q2 2023.

Alphabet has also recently announced some management changes at the company starting from September 1. On that date, Ruth Porat will become the CIO and the president of the company.

Looking ahead, the optimism surrounding the recent results will only last a few days at best as the attention is now towards the FOMC meeting. In general, a rate hike will not be good for Alphabet, while a pause in the rate hike or even a rate cut will benefit Alphabet's stock.

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